- Why in news
- On 20 March 2026, the Ministry of Power held a CEO Roundtable on power distribution at the Bharat Electricity Summit 2026. It discussed the distribution reforms proposed in the draft National Electricity Policy, 2026.
- What it is
- The National Electricity Policy is the Centre's policy framework for the power sector, issued under the Electricity Act, 2003. The 2026 draft updates it for high growth, net-zero goals and more renewables. Its distribution chapter aims to make DISCOMs financially viable and reliable.
- Consumption targets
- The draft targets per capita electricity use of 2,000 kWh by 2030 and over 4,000 kWh by 2047.
- AT&C losses
- The aim is single-digit AT&C losses, through phased prepaid smart meters starting with government, commercial and industrial consumers.
- Distribution System Operator
- The draft recommends a DSO to integrate distributed renewables, storage and Vehicle-to-Grid, using local energy markets.
- Shared networks
- Shared distribution networks are proposed to remove duplicate infrastructure.
- Climate commitments
- India's goals are a 45% cut in emissions intensity from 2005 levels by 2030 and net-zero by 2070.
- AT&C loss meaning
- AT&C loss is the share of energy put into the distribution system that is not billed and collected. It combines technical loss and commercial loss (theft, billing and collection gaps).
Don’t confuse with AT&C loss vs T&D loss: AT&C loss includes collection inefficiency, so it is wider than T&D loss, which counts only energy lost in transmission and distribution.
Don’t confuse with DSO vs DISCOM: A DISCOM supplies power and bills consumers. A DSO would run and balance the local distribution grid, including distributed resources.
Economy terms and data: 42 Prelims questions since 2013, rising in recent years; they test what a term or instrument means. In Mains, 12 news-triggered questions.
Why it matters
- Viable DISCOMs are needed to supply power for a USD 30 trillion economy by 2047.
- Distribution reform supports integration of renewables and the net-zero 2070 goal.
Problems
- DISCOMs carry heavy debt, and tariffs often do not cover costs.
- State politics, subsidies and theft slow down loss reduction and smart meter rollout.
Way forward
- Roll out prepaid smart meters in phases, with regular energy audits.
- Set up a DSO and strengthen corporate governance in DISCOMs.
Put in your answer
Distribution targets: Single-digit AT&C losses, DT-level redundancy in cities above 10 lakh population by 2032, and underground cabling in congested areas.
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UPSC’s own questions that come close to this issue, from our Prelims and Mains banks.
No practice question for this one; the card may still help an answer. Why: Draft policy with targets of 2,000 kWh per capita by 2030 and over 4,000 kWh by 2047. Draft stage, so it is not yet testable.
Worth revising until Prelims 2027: most news questions come within two years of the event.